$725 Million NPV With a 39.5-Year Mine Life
The August 2025 Pre-Feasibility Study confirms Fort Cady as a robust, long-life boron project with strong economics at conservative pricing assumptions. Phase 1 converts just 41% of the resource, leaving significant expansion optionality beyond the base case.
The Fort Cady Pre-Feasibility Study (August 2025) confirmed Phase 1 project economics with a pre-tax NPV₇ of US$724.8 million, a 19.2% unlevered IRR, and $3.75 billion in pre-tax free cash flow over a 39.5-year mine life. On an after-tax basis, the project delivers an NPV₇ of US$469 million, a 15.9% IRR, $2.63 billion in free cash flow, and a 5.9-year capital payback. Total initial capital is US$435 million.
Phase 1 Economics at a Glance
SK-1300 compliant Pre-Feasibility Study, August 7, 2025. All figures reflect Phase 1 only.
Pre-Tax and After-Tax Economics
Complete economic analysis under both scenarios, reflecting the unlevered Phase 1 mine plan with no project financing assumed.
Pre-Tax
After-Tax
Capital & Operating Costs
Initial Capital: $434.9M
| Capital Component | Cost (US$M) | % of Total |
|---|---|---|
| Process Facility | $280.7 | 64.5% |
| Co-Generation Plant (COGEN) | $50.2 | 11.5% |
| Wellfield Development | $30.8 | 7.1% |
| Evaporation Ponds | $5.6 | 1.3% |
| Subtotal Direct | $367.3 | 84.4% |
| Contingency | $55.1 | 12.7% |
| Owner's Costs | $12.5 | 2.9% |
| Total Initial Capital | $434.9 | 100% |
Operating Cost Waterfall ($/Short Ton)
Revenue Composition & Pricing Assumptions
Boric acid is the dominant revenue driver at 94% of total project revenue. By-product gypsum and calcium chloride contribute 6%, providing cost offsets and diversification.
| Product | Volume (stpa) | Price ($/st) | Revenue Share |
|---|---|---|---|
| Boric Acid (H₃BO₃) | 130,000 | $1,355 | ~94% |
| Gypsum | 129,000 | $21 (netback) | ~2% |
| Calcium Chloride (~38%) | 57,000 | $120 (netback) | ~4% |
| Total Estimated Revenue | ~$191M per annum (steady state) | 100% | |
Market Context
Global boron demand is forecasted to exceed supply beginning in 2026. Turkey's Eti Maden controls ~65% of global production, and Rio Tinto has placed its borates business under strategic review. These dynamics support pricing above the PFS assumption of $1,355/short ton.
Projected Cash Flow Profile
Initial capital deployment during 2-year construction, followed by ramp-up to steady-state production and sustained free cash generation over 39.5 years.
Construction Phase
Years 0–2: $435M deployed across process facility, COGEN, wellfield, and supporting infrastructure.
Ramp-Up
Year 3: Plant ramp-up to design throughput. First commercial sales from full-scale facility.
Steady State
Years 4–39.5: Sustained production at 130,000 stpa. ~$191M annual revenue, ~$119M EBITDA.
What Moves the Economics
The project's NPV is most sensitive to boric acid price and production volume, both with favorable outlooks given tightening global supply-demand.
Price Outlook Favors Upside
The PFS base case uses $1,355/short ton LOM average, a conservative assumption given that global boron demand is forecasted to exceed supply in 2026. Turkey's Eti Maden controls ~65% of global production, and Rio Tinto has placed its borates business under strategic review. These supply-side dynamics support pricing above the PFS assumption.
Expansion Optionality Not Captured in Base Case
The PFS economics represent Phase 1 only. Multiple sources of value upside exist beyond the base case, none of which are included in the NPV or IRR figures.
Resource Conversion
59% of M+I resource remains unconverted. Additional reserve conversion could extend mine life or increase throughput.
Phase 2 Expansion
Permitted capacity of ~160,000 stpa vs. Phase 1 target of 130,000 stpa. Headroom for production increase within existing permits.
Value-Added Products
Downstream boron derivatives (boron carbide, boron nitride, etc.) command significant premium pricing over boric acid.
Lithium Co-Product
Lithium resources confirmed in the deposit. Potential for lithium carbonate recovery as an additional revenue stream.
Project Financing
PFS assumes 100% equity. Project-level debt (including potential EXIM financing) would improve equity returns above the unlevered 15.9% after-tax IRR.
Cautionary Note Regarding Forward-Looking Statements
This page contains forward-looking statements including projected NPV, IRR, free cash flow, production volumes, capital costs, operating costs, revenue estimates, pricing assumptions, and expansion optionality. Actual results may differ materially due to changes in commodity prices, construction costs, permitting, financing, and other factors. All economic projections are based on the SK-1300 Pre-Feasibility Technical Report dated August 7, 2025. The PFS assumes 100% equity financing; project-level debt would change equity return metrics. Expansion phases, value-added products, and lithium recovery are conceptual and not included in PFS economics. For complete risk factors, see the Company's SEC filings.
Read Full Forward-Looking Statement Disclaimer →
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